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What are the best bets for investment and development in 2015? Based on personal interviews with and surveys from more than 1,000 of the most influential leaders in the real estate industry, this forecast will give you a heads-up on where to invest, which sectors and markets offer the best prospects, and trends in the capital markets that will affect real estate.

This report explores how the asset management industry’s operating landscape will change by 2020, and explains how asset managers can prepare for the challenges ahead and turn them into competitive advantages.

Evolution of the mutual fund transfer agent: Embracing the challenges and opportunities
The mutual fund industry landscape has changed over the past 30 years to accommodate investors’ moves toward using intermediaries. There have also been changes in the relationships among mutual funds, their transfer agents, and intermediaries. In a process that offers investors a more efficient way to access a wider choice of mutual funds, the industry has evolved toward the use of omnibus subaccounting.

Current Developments for Mutual Fund Audit Committees, March 31, 2015
The latest Q1, 2015 publication including featured articles on topics impacting the mutual fund industry, a summary of recent accounting and financial reporting, auditing and regulatory developments, together with links to relevant publications of interest, and a list of upcoming webcasts and industry, is now available.

Swap Guidance – May 2015 Developments
This alert explores some of the recent developments regarding the highly-anticipated section 871(m) regulations and updates to the notional principal contract (“NPC”) regulations.

Rebooting wealth management
Over the next 50 years, more than $41 trillion in assets will be transferred between generations. To stay competitive, wealth managers and their firms must invest to improve technology, processes and strategy. Learn how Salesforce and PwC can help your firm maximize client relationships.

Exchange Traded Funds (ETFs): Outlook to 2020
Exchange Traded Funds (ETFs) are no longer considered a niche product. New investor segments continue to integrate ETFs into their portfolios and fund sponsors continue to introduce new products.

Certain total return derivatives facing increased scrutiny
On July 22, 2014, the Senate Permanent Subcommittee on Investigations (“PSI”) held a hearing entitled “Abuse of Structured Financial Products: Misusing Basket Options to Avoid Taxes and Leverage Limits.” Although the purpose of the hearing was to probe the use of a particular trading strategy by certain hedge funds, it may result in increased scrutiny around total return derivatives and swaps in general and may further shed a negative spotlight on the industry.

Asset Management 2020: A Brave New World
This report explores how the asset management industry’s operating landscape will change by 2020, and explains how asset managers can prepare for the challenges ahead and turn them into competitive advantages.

New guidance on US withholding on dividend equivalent payments on swaps over US equities
On December 5, 2013, new guidance was released regarding derivatives over US equities that call for dividend equivalent payments that can be subject to up to 30 percent gross US withholding tax. Final regulations extend (to December 31, 2015) the current four factor scheme in section 871(m)(3)(A) for determining whether dividend equivalent payments on swaps are subject to US withholding tax

How global tax reforms might impact ETF efficiency: A look at the implications for ETF strategy and structuring
Due to their low costs and potentially greater tax efficiency, ETFs offer a very efficient return to investors. ETFs’ tax advantages have contributed to their strong competitive position and growth. But a rapidly changing tax environment will present challenges as governments around the globe seek to bridge budget deficits. By staying on top of these changes, sponsors can mitigate adverse effects while remaining compliant with changing global tax laws.

The next generation of ETFs: Why every asset manager needs an ETF Strategy
Exchange traded funds (ETFs) have enjoyed two decades of explosive growth. Evolving and proliferating as they attracted new users, ETFs went from a single vehicle providing exposure to large cap US equities to thousands of products representing a dizzying range of asset classes and strategies. As ETFs reshape their environment all over again, asset managers and intermediaries alike will want to have strategies in place to deal with the changes sweeping across the competitive landscape.

ETFs: How innovators and regulators are shaping growth in the Asset Management industry
As Exchange Traded Funds (ETFs) enter their next phase of growth, much rests on the actions of the regulators. Innovation created ETFs and equipped them to achieve success through flexible, inexpensive and tax-efficient tracking of broad-based market indices. While growth in ETFs is set to continue, the pace of expansion likely will be impacted by regulations.

PwC Mutual Fund Directors Roundtable: 2013 highlights
Professionals from PwC’s Asset Management practice and directors from the boards of some of the nation’s leading mutual fund groups gathered for informal discussions of the industry’s key issues and significant challenges. The perspectives presented give insights on leading practices in mutual fund oversight, how directors are meeting the challenges they face, and offer a view into the evolving role of directors and boards in the mutual fund industry.

Strategic Imperatives for Asset Managers
This paper presents a thematic introduction to the issues the asset management industry is facing, the key implications to asset managers, and the questions firms should be asking to best adapt their strategies and take advantage of these new and emerging industry demands.

9 new rules of IT strategy for asset management
The asset management industry is in the midst of significant structural change, with primary drivers including shifting investor preferences, pricing pressure and uncertain markets. While we see significant variation in how firms are adapting to these changes, we have identified many situations where asset management firms' business and IT strategies are at risk of misalignment.

From black box to open book: Hedge fund trust and transparency
US hedge funds have significantly enhanced their transparency, controls and infrastructure, helping to win the trust of institutional investors that is critical for their future growth. Across the hedge fund value chain, a new framework is emerging that is improving investor protection. But this evolution remains a work in progress, with inefficiencies and areas for improvement yet to be addressed.

Top Issues Facing Asset Managers
The asset management industry faces challenging markets, regulatory reform, competition for clients and talent, and new expectations from investors, regulators, industry partners and other stakeholders. In spite of these challenges, the asset management industry is positioned for future growth.

Evolution of the mutual fund transfer agent: Embracing the challenges and opportunities
The mutual fund industry landscape has changed over the past 30 years to accommodate investors’ moves toward using intermediaries. There have also been changes in the relationships among mutual funds, their transfer agents, and intermediaries. In a process that offers investors a more efficient way to access a wider choice of mutual funds, the industry has evolved toward the use of omnibus subaccounting.

Exchange Traded Funds (ETFs): Outlook to 2020
Exchange Traded Funds (ETFs) are no longer considered a niche product. New investor segments continue to integrate ETFs into their portfolios and fund sponsors continue to introduce new products.

Hedge fund administration: 4 trends that may drive new growth
With growth opportunities for hedge fund administrative services decreasing, where will new demand come from? The answer lies in competitive forces now shaping the asset management industry. Learn which four key industry trends could drive new growth in hedge fund administration, and how these emerging changes could affect your business.

Certain total return derivatives facing increased scrutiny
On July 22, 2014, the Senate Permanent Subcommittee on Investigations (“PSI”) held a hearing entitled “Abuse of Structured Financial Products: Misusing Basket Options to Avoid Taxes and Leverage Limits.” Although the purpose of the hearing was to probe the use of a particular trading strategy by certain hedge funds, it may result in increased scrutiny around total return derivatives and swaps in general and may further shed a negative spotlight on the industry.

Asset classes in the alternatives industry – What’s hot, what’s not
In response to today’s continuing low interest rates, asset managers are exploring new asset classes in search of higher yields. To address this trend within the alternative investments industry, PwC hosted a webcast to provide information on the market activity within specific asset classes, including what is attractive about each class, structuring opportunities and strategies, and the tax implications. This document summarizes the issues discussed by a panel of tax and asset management specialists from PwC’s Asset Management Tax, Washington National Tax Service, and Cleantech & Sustainable Business Solutions practices.

Net Investment Income Tax: Application to alternative investments
The Patient Protection and Affordable Care Act of 2010 imposed on individuals, estates, and trusts a new Medicare tax equal to 3.8% on Net Investment Income (“NII”) starting in the 2013 tax year. On November 27, 2013, Treasury issued much anticipated final regulations, effective for tax years beginning after December 31, 2012. In addition to the issuance of the final regulations, the IRS issued 2013 proposed regulations to provide guidance on issues not addressed in the 2012 proposed regulations.

What does the Cayman Islands IGA really mean for the asset management industry?
This alert addresses FATCA and the recent negotiation of the IGA between the United States and the Cayman Islands. Through a series of FAQs, this alert describes what the Cayman/US IGA means for the asset management industry by addressing some of the more relevant implications of the Cayman/US IGA for asset managers based on the IGAs signed to date.

Implications of net investment income tax for asset managers
The Patient Protection and Affordable Care Act of 2010 passed a new Medicare tax of 3.8% on Net Investment Income ("NII"), effective January 1, 2013. Although this new tax is applied at the individual level, partners will require a thorough analysis of their "net investment income" from pass-through entities.

Alternative Investment Fund Reporting Under the New Cost Basis Reporting Regime
In response to the broker cost basis reporting requirements, the IRS has released a revised Schedule D - Capital Gains and Losses and a new supporting schedule, Form 8949 – Sales and Other Dispositions of Capital Assets for partnerships and corporations for tax year 2012. This new form is intended to assist the IRS with the reconciliation of a taxpayer's basis records and the amounts of gains and losses being reported with its brokers' records of such amounts. However, it is not expected to be used to reconcile differences that result when a taxpayer and a broker do not agree on the particular lot that has been relieved and so it emphasizes the importance of funds and brokers addressing lot relief methods upfront.

12th Annual Alternative Investments Seminar highlights
PwC is hosted its 12th Annual Alternative Investments Seminar in nine US cities in 2012 and in several key international centers. This document provides highlights from the 2012 New York Alternative Investments Seminar.

Form 8938 and Specified Foreign Financial Asset Reporting for Alternative Funds under §6038D
In December 2011, the IRS issued a final version of Form 8938, Statement of Specified Foreign Financial Assets, along with instructions. Form 8938 is devised to facilitate the SFFA reporting requirements of §6038D, and requests information on account owner, type and value. This document provides an overview of the current filing requirements and the type of assets that are required to be reported.

Asset Management M&A Insights: Navigating through stormy markets
The instability and uncertainty of recent markets has left merger and acquisition activity unchanged from depressed levels in prior years, despite pent-up demand among buyers. Growth is clearly back on corporate agendas as CEOs are focused on how to best capture and maximize new revenue opportunities. Learn more in this inaugural issue of Asset Management M&A insights.

US Asset Management - The State of the Industry
This paper explores what we believe to be among the key challenges facing the industry, as it continues to grapple with a number of difficult issues, including: Product development, Evolving investor expectations, Mergers & acquisitions, Global tax risk, Global sourcing, Tax optimization, Performance measurement, Talent management, Regulatory change (including Dodd Frank, FATCA and more).

10th annual alternative investments seminar highlights
PwC recently held its 10th annual alternative investments seminar series across the country and internationally to explore the challenges facing the industry now and in the coming decade. The attached publication captures highlights from the seminar and provides insight into the key trends and developments discussed at the seminars.

From black box to open book: Hedge fund trust and transparency
Our view is that there is room for further improvements related to conflicts of interest and operational controls to allow the sector to truly fulfil its growth potential. As allocations to hedge funds increase, trust and transparency will now be crucial factors in winning investors’ favor for allocations of assets.

US Real Estate Insights: Spring 2015
This issue features an article that expands on the trend of US investors deploying capital in foreign markets, as well as the effect of changing demographics on the real estate investing landscape.

Desert Capital: A REIT’s Guide to Transfer Pricing?
A court case focusing on intercompany transactions between a Real Estate Investment Trust (“REIT”) and its Taxable REIT Subsidiary (“TRS”) was recently concluded. The case is significant because it specifically addresses the interplay between the REIT and transfer pricing rules of the Internal Revenue Code (“IRC”).

IRS issues additional tangible property guidance providing further relief to taxpayers
In a move designed to simplify and reduce filings, the IRS recently released Rev. Proc. 2015-20, which provides further relief for small business taxpayers, including some entities owned by larger businesses, striving to comply with the final tangible property ‘repair’ regulations (TD 9636) and related final ‘disposition’ regulations (TD 9689). This alert provides insights and recommendations for taxpayers in the real estate industry regarding this new guidance.

FIRPTA reform passes Senate Finance Committee
The Senate Finance Committee recently passed certain changes to the (FIRPTA) which generally subjects non-US persons to tax on sales of United States real property interests. The bill was passed unanimously, evidencing bipartisan support. While this is an important step in the legislative process, the bill would need to be passed by both Houses of Congress and signed into law by the president before it became effective.

REIT Preferential dividends and management fee structures
The IRS has recently ruled in PLR 201444022 that separate classes of shares of a REIT would not be recognized as separate where the separate classes were offered solely to implement a tiered investment advisory fee structure in which the amount of the fees effectively borne by the shareholders would vary based on the amount invested by the shareholders. As a result, the REIT distributions would be preferential and would not be eligible for the dividends paid deduction.

Emerging Trends in Real Estate® 2015
What are the best bets for investment and development in 2015? Based on personal interviews with and surveys from more than 1,000 of the most influential leaders in the real estate industry, this forecast will give you a heads-up on where to invest, which sectors and markets offer the best prospects, and trends in the capital markets that will affect real estate.

Proposed regulations on the definition of real property for REITs
On May 9, 2014, the IRS released proposed regulations (“Proposed Regulations”) which are intended to clarify the definition of “real property” for purposes of the asset tests applicable to real estate investment trusts (“REITs”). The IRS’s expectation is that taxpayers will be able to utilize the additional guidance in the proposed regulations to analyze whether their assets qualify as real property in lieu of seeking private letter rulings.

Baucus Tax Reform Proposals and Real Estate
This PwC alert highlights the recent tax reform proposals proposed by Senator Max Baucus, who chairs the Senate Finance Committee (the “Baucus Proposals”). The proposals include a variety of proposed changes that could have a dramatic impact on those in the real estate industry, including REITs, real estate funds and their investors.

Final Net Investment Income Tax Regulations: impact on real estate investments
This alert explores how some of the changes that were enacted as part of the Health Care and Education Reconciliation Act of 2010, the Medicare Contribution Tax ("MCT," also referred to as the Net Investment Income or NII tax) affect real estate investments as well as additional considerations relevant to our industry.

Real Estate 2020: Building the future
As confidence returns to real estate, the industry faces a number of fundamental shifts that will shape its future. PwC has looked into the likely changes in the real estate landscape over the coming years and identified the key trends which, we believe, will have profound implications for real estate investment and development.

The overhaul of lease accounting: Catalyst for change in corporate real estate
The proposed lease accounting changes may provide a catalyst for change to companies' real estate operations that go well beyond what is required for the accounting change. As a result, this is causing many companies to reconsider other aspects of their operations with respect to real estate - both owned and leased.

The impact of the repair regulations on the real estate industry
The IRS recently published Notice 2012-73, which announced an intent to delay the effective date of the “repair regulations” that provide new rules related to the acquisition, production, or improvement of tangible property until taxable years beginning on or after January 1, 2014.

Real Estate Tax Alert: Rev. Rul. 2012-17— June 2012
In Rev. Rul. 2012-17, the Internal Revenue Service has ruled that a REIT’s investment in the shares of a money market fund constitutes an investment in "cash and cash items" for purposes of section 856(c)(4)(A) of the Internal Revenue Code.

US Asset Management - The State of the Industry
This paper explores what we believe to be among the key challenges facing the industry, as it continues to grapple with a number of difficult issues, including: Product development, Evolving investor expectations, Mergers & acquisitions, Global tax risk, Global sourcing, Tax optimization, Performance measurement, Talent management, Regulatory change (including Dodd Frank, FATCA and more).

Becoming FATCA Compliant - Why asset managers should prepare now
Beginning January 1, 2013, the provisions of the Financial Account Tax Compliance Act (FATCA) will impose a 30% US withholding tax on any US-sourced income and the gross proceeds from the sale of investments that produce US sourced interest or dividends (withholdable payments) received by any offshore fund or other foreign financial institution (FFI).